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DECREE

Amending and supplementing a number of articles of the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, on provision of prized video game services for foreigners

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Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the November 26, 2014 Law on Enterprises;

Pursuant to the November 26, 2014 Law on Investment;

At the proposal of the Minister of Finance;

The Government promulgates the Decree amending and supplementing a number of articles of the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, on provision of prized video game services for foreigners.

Article 1. To amend and supplement a number of articles of the Government’s Decree No. 86/2013/ND-CP of July 29, 2013, on provision of prized video game services for foreigners

1. To amend Clauses 1 and 2 of Article 4 as follows:

“1. Providing prized video game services when not yet obtaining a business eligibility certificate, except the enterprises prescribed in Article 51 of this Decree.

2. Providing prized video game services at variance with the contents licensed by competent state management agencies in accordance with law.”

2. To amend Clause 1 of Article 5 as follows:

“1. Enterprises providing prized video game services (below referred to as enterprises) may organize prized video gaming activities at only one business location licensed by a competent state management agency in accordance with law.”

3. To amend and supplement Clause 2 of Article 13 as follows:

“2. Provisions on gaming devices

a/ Prized video gaming machines used at the business location must be brand-new machines which have their technical specifications announced by manufacturers and have obtained inspection certificates issued by independent inspection institutions operating in G7 countries;

b/ The fixed payout rate (inclusive of progressive jackpots) of slot machines must be at least 90% and pre-installed in the machines. Enterprises may change the payout rate, which, however, must not be lower than the prescribed minimum payout rate, and shall carry out procedures for re-inspection of gaming machines before putting them into use and clearly state the payout rate in the gaming rules.”

4. To amend Clauses 1 and 6 of Article 14 as follows:

“1. Enterprises that have been granted a business eligibility certificate and enterprises prescribed in Article 51 of this Decree may purchase tokens and prized video gaming machines. The purchase and import of tokens and prized video gaming machines must comply with the law on import and export, other relevant laws, this Decree and guidance of the Ministry of Culture, Sports and Tourism.

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6. If prized video gaming machines break down when in use or need to be regularly maintained, enterprises may conduct the repair or maintenance but may not interfere into the payout rate. In case the repair or maintenance of a gaming machine concerns parts which may change the payout rate, the enterprise shall hire an independent inspection institution as prescribed in Clause 2, Article 13 of this Decree to re-inspect the machine before putting it into use.”

5. To amend Point a, Clause 1 of Article 18 as follows:

“a/ Providing prized video games of the genres and forms as prescribed by law and this Decree.”

6. To amend Clause 1 and Point dd, Clause 3 of Article 19 as follows:

“1. An enterprise shall be granted a certificate of eligibility for provision of prized video game services only after having obtained from a competent agency a license for establishment and operation of tourism accommodation establishments and having registered the business line of providing prized video game services in accordance with the Law on Investment or the Law on Enterprises.

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3. Conditions for grant of a business eligibility certificate include:

dd/ Having a charter capital of at least VND 200 billion;”

7. To annul Clause 6 and amend Clauses 2, 3 and 10 of Article 20 as follows:

“2. A certified copy of the investment registration certificate or enterprise registration certificate granted by a competent state management agency under the Law on Investment or the Law on Enterprises which states the business line of providing prized video game services, or a copy of such certificate enclosed with the original for comparison.

3. A certified copy of the decision on tourist accommodation establishment ranking issued by a competent state agency or a copy of such decision enclosed with the original for comparison.

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10. A list of managers and executives, their resumes, and certified copies of their diplomas proving their professional capacity and qualifications, or copies of such diplomas enclosed with the originals for comparison.”

8. To add following Point d to Clause 3 of Article 21:

“d/ After obtaining a business eligibility certificate from the Ministry of Finance, the enterprise shall carry out procedures to supplement the business line of providing prized video game services to its certificate of satisfaction of security and order conditions in accordance with law before starting to provide prized video gaming services.”

9. To amend Article 24 as follows:

“Article 24. Licensing charges

Charges for grant, re-grant, modification and extension of business eligibility certificates must comply with the law on charges and fees which is guided by the Ministry of Finance.”

10. To amend Article 27 as follows:

“Article 27. Advertising

1. Only enterprises already granted business eligibility certificates and the enterprises prescribed in Article 51 of this Decree may advertise prized video gaming activities.

2. Advertising contents include:

a/ Name and address of the enterprise providing prized video game services;

b/ Names of prized video games;

c/ Business location;

d/ Subjects eligible to play prized video games as prescribed in Article 9 of this Decree.

3. Advertising places and forms

Enterprises may only run advertisements by placing billboards and signboards inside their tourist accommodation establishments which have been licensed by competent state management agencies to provide prized video game services but must ensure that persons standing outside these establishments may neither hear nor see advertising contents.

4. In addition to complying with Clauses 1, 2 and 3 of this Article, enterprises may not run advertisements for prized video game services in any form and shall comply with other provisions of the advertising law.”

11. To annul Point d, Clause 1 and Point c, Clause 8 of Article 32.

12. To amend Clauses 3 and 4 of Article 33 as follows:

“3. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment, the Ministry of Public Security, the Ministry of Culture, Sports and Tourism, related ministries and sectors and provincial-level People’s Committees of the localities where enterprises conduct business activities in, conducting inspection once every 3 years so as to consider whether to permit enterprises to continue their business activities or revoke their business eligibility certificates or propose competent state management agencies to handle enterprises in accordance with law. Inspection contents cover:

a/ Inspection of the satisfaction of the conditions for grant of a business eligibility certificate prescribed at Points a, b, c and d, Clause 3, Article 19 of this Decree.

Particularly for the enterprises prescribed in Article 51 of this Decree, the inspection of satisfaction of the conditions for providing prized video game services licensed by competent state management agencies in accordance with law.

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4. Provincial-level People’s Committees and heads of police offices of district or higher level may decide to conduct unscheduled inspection in case enterprises show signs of violating regulations on subjects eligible to play prized video games or regulations on assurance of security and social order and safety or when receiving crime reports concerning the enterprises.”

13. To amend Clause 3 of Article 38 as follows:

“3. A fine of between VND 90,000,000 and VND 100,000,000 shall be imposed on individuals providing prized video game services without business eligibility certificates. For organizations and units, except the enterprises prescribed in Article 51 of this Decree, which commit the violation prescribed in this Clause, a fine twofold the above-said level shall apply.”

14. To amend Clauses 2 and 4 of Article 39 as follows:

“2. A fine of between VND 180,000,000 and VND 200,000,000 shall be imposed on enterprises providing prized video game services at places other than those licensed by competent state management agencies in accordance with law.

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4. To apply remedial measures:

Forcible restoration of the business location to fully meet the conditions prescribed by law and comply with the location licensed by competent state management agencies in accordance with law.”

15. To amend Clause 3 of Article 45 as follows:

“3. A fine of between VND 90,000,000 and VND 100,000,000 shall be imposed on enterprises trading in prized video gaming machines but failing to fully meet the conditions prescribed in Article 13 of this Decree.”

16. To amend Article 51 as follows:

“Article 51. Transitional provisions

Enterprises which have been granted investment registration certificates or enterprise registration certificates stating the business line of providing prized video game services or which have obtained written permissions for providing prized video game services issued by competent state management agencies before the effective date of this Decree may continue providing prized video game services under such certificates or permissions. If wishing to be granted a business eligibility certificate, enterprises shall carry out procedures as follows:

1. A dossier of application for grant of a business eligibility certificate must comprise:

- A certified copy of the valid investment registration certificate or enterprise registration certificate stating the business line of providing prized video game services or a copy thereof enclosed with the original for comparison, or the written permission for provision of prized video game services issued by a competent state management agency;

- Papers proving the quantity, categories and types of prized video gaming machines used by the enterprise to provide prized video game services before the effective date of this Decree or written permission issued by a competent state management agency (if any);

- The papers specified in Clauses 1, 3, 4, 5, 7, 8, 9 and 10, Article 20 of this Decree. Enterprises without tourist accommodation establishments are not required to submit the papers prescribed in Clauses 3 and 4, Article 20 of this Decree.

2. The enterprise shall submit 1 set of the dossier of application for grant of a business eligibility certificate to the Ministry of Finance. Within 30 working days after receiving a valid and complete dossier from the enterprise, the Ministry of Finance shall grant a business eligibility certificate to the enterprise, clearly stating:

a/ The quantity, categories and types of prize video gaming machines which the enterprise is permitted to use to provide prized video game services, which shall be determined based on either the enterprise’s investment registration certificate or enterprise registration certificate or the quantity, categories and types of prized video gaming machines used by the enterprise to provide the services under law before the effective date of this Decree or written permission for provision of prized video game services issued by a competent state management agency. If there are any differences between the quantity of machines stated in the certificate and the quantity of machines currently used by the enterprise, the enterprise may provide the services with greater quantity of machines.

Particularly, in case the enterprise has not yet started providing prized video game services, the quantity of prized video gaming machines which the enterprise may use to provide the services shall be determined based on its investment registration certificate or enterprise registration certificate or written permission for provision of prized video game services issued by a competent state management agency. In case the investment registration certificate or enterprise registration certificate or written permission does not specify the quantity of prized video gaming machines, the enterprise may provide the services with a quantity of machines prescribed in Clause 1, Article 7 of this Decree.

b/ The validity duration of the business eligibility certificate must at most equal the remaining operation duration of the enterprise stated in its investment registration certificate or enterprise registration certificate or written permission for provision of prized video game services issued by a competent state management agency. In case the investment registration certificate or enterprise registration certificate or written permission does not specify the operation duration, the validity duration of the business eligibility certificate must comply with Article 22 of this Decree.”

Article 2. Implementation provisions

1. This Decree takes effect on February 15, 2017.

2. In case enterprises have submitted dossiers of application for business eligibility certificates and have received from the Ministry of Finance notices confirming the completeness and validity of their dossiers under Clause 1, Article 21 of Decree No. 86/2013/ND-CP before the effective date of this Decree, their dossiers shall be further appraised for grant of business eligibility certificates under Decree No. 86/2013/ND-CP.

3. The Minister of Finance shall assume the prime responsibility for, and coordinate with related ministries and sectors in, guiding the implementation of this Decree.

4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree./.